Economist Enrico Tanuwidjaja and Junior Economist Agus Santoso at UOB Group comment on the recently published Consumer Confidence gauge in Indonesia.

Key Takeaways

“Consumer Confidence Index (CCI) rose to 123.3 in Mar from 122.4 in Feb and only 5.6 points from its highest level of 128.9 in May 2022.”

“The improvement of CCI was driven by an increase in consumer confidence in current economic conditions and expectations for the economic outlook.”

“Increase in purchases of durable goods, especially by people with expenditure levels of more than IDR5 mn/month had contributed to the improvement of the CCI. Improvement in business activity, people mobility, and the 7.5% increase in average minimum wage were the supporting factors of higher domestic consumption in 1Q23.”